Held that though the assessee has stopped its business of generation of electricity in the relevant year for commercial considerations and not completely abandoned the said business and kept the assets ready for use, claim for depreciation is allowable. Followed National Thermal Power Corpn. Ltd. v. CIT (2013) 357 ITR 253 (Delhi) (HC), CIT v. Swarup Vegetable Products India Ltd. (2005) 277 ITR 60 (All) (HC). As regards the disallowance of interest the matter remanded to the Assessing Officer for verification. (AY. 2013-14, 2014-15)
Sambhav Energy Ltd. v. ACIT (2022) 220 DTR 305/ 220 TTJ 1147/(2023) 199 ITD 750 (Jodhpur) (Trib)
S. 32 : Depreciation-Suspension of business activities-generation and sale of electricity-Kept the asset for ready to use-Eligible for depreciation-Interest disallowance-Matter remanded for verification. [S. 32(1)(ii), 36(1)(iii)]